Land Trust

The straightforward definition: A trustee (our institution) agrees to hold ownership of a piece of property for the benefit of an individual or group of individuals (beneficiary). The beneficiary maintains full use of the property. The First National Bank would only act upon your written direction to do so. Tax bills, land inquiries, and ownership records are shielded by the institutions name to protect the privacy of the beneficiary. These can be as simple as a single-occupancy home or as complex as a multi-state real estate investment. Corporations may wish to do this when compiling multiple tracts of land to avoid arousing suspicion or alerting the public on their future building plans. Another example of a benefit is interests can be easily transferred without recording a deed.

Land Trust FAQ's

The main benefit is confidentiality of the parties involved. The First National Bank's name shields the individual beneficiary from public record (unless required by law). Having a land trust also transfers ownership from real property (title) to personal property (beneficial interest), allowing succession of ownership to transfer more easily by using an Assignment of Beneficial Interest form .

Land trusts must have a definable term of existence. Over time, a period of twenty years has become the standard length of extension in regard to land trusts. This helps to eliminate dispute and prevent future issues for contingent beneficiaries.

Yes. A land trust can hold multiple properties. It is important to note however that the beneficial interest, including successor beneficiary information, applies to all properties held in the same land trust. There is a $25 charge each time a property is added or removed.

To keep your ownership private, you want to have the tax bills mailed directly to The First National Bank. We will forward your tax bill to you, allowing your name to remain out of the public tax records. The tax assessee (taxpayer) should be addressed as follows: